Laos 2023. Hit By Currency Depreciation Auto Market Gained Moderately (+2.3%)

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Lao Vehicle Market kept growing in 2023. While at a moderate speed, the market continued the positive pathway. Sales were 22.320 (+2.3%), the best performance in 8 years. Although losing sales Toyota is still market leader.

 

The Lao economy has continued its recovery in 2023, with GDP growth forecast at 3.7%, up from 2.7% in 2022. Improved performance in tourism, transport and logistics services, and foreign investment has contributed to the recovery.

However, growth is lower than previously expected, mainly because of the falling value of the kip, inflation, labor shortages, and unfavorable weather.

Inflation has increased consumption costs, reduced household spending on food, education, and health, and depleted savings, thereby placing many households at risk of falling into poverty.

Laos’s car market kept growing, while penalized by currency depreciation and sales increased only 2.3% at 22.320. However, this was the highest level in the last 8 years and the third highest level ever.

Brand-wise, the leader was again Toyota although losing sales (-8.8%).

In second place the local OEM Daeham took advantage by currency depreciation and gained 19.8%, while in third, Hyundai was up moderately (+2.1%).